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Overtime Policy

Employment standards laws give employees the right to overtime pay at time-and-a-half after working past a specific number of hours in a day or week. Overtime rules are intricate and a frequent source of ESA complaints and grievances. So you need to incorporate overtime ground rules into your salary and wages policies.


The purpose of this policy is to control labor costs by managing the expense of overtime pay to employees. This does not include exempt employees or employees under an averaging agreement. If your employment agreement is regulated by the Canada Labour Code, you are required to compensate employees at 1.5 times their regular wage for all hours worked in excess of eight in a day or 40 in a week.


_______________ will pay time and a half to nonexempt employees who exceed 40 hours of work time in a workweek.
Paid leave, such as holiday, sick or vacation pay, does not apply toward work time.

The workweek begins at 12:00 a.m. on Sunday morning and ends at 11:59 p.m. on Saturday night.
Although employees are normally scheduled for a 37.5-hour workweek, overtime payments do not commence until the employee exceeds 40 hours in a workweek.

  1. Overtime Approval

Supervisors are required to obtain approval from managers prior to the use of overtime. Employees who anticipate the need for overtime to complete the week’s work must notify their supervisors in advance and obtain approval prior to working hours that extend beyond their normal schedule. Approval is required for hours that exceed 37.5 hours in a workweek.

2. Mandatory Overtime

During busy periods, the employer may require employees to work extended hours. Overtime is considered a condition of employment, and refusal to accept it when reasonable notice has been given is cause for discipline, up to and including termination.

Reporting and Reimbursement of Overtime Hours

  1. Payment of Overtime
    Employees of ___________________ who are required or permitted to work in excess of the standard hours of work are entitled to overtime pay of at least 1.5 their regular rate of wages.
  2. Standard Hours of Work
    The standard hours of work for an employee will not exceed 8 hours a day or 40 hours a week or the number of hours established by regulations for the industry and class of employees in accordance with Section 175 of the Canada Labour Code (Code) subject to the provisions below.